Japan Coincident Index Slips to 3-Month Low
2026-10-07 05:03
By
Farida Husna
1 min. read
Japan’s coincident economic index, a key gauge of current economic conditions based on indicators including industrial production, employment and retail sales, fell to 118.7 in August 2026 from a final 120.6 in the prior month, preliminary data showed.
The reading was the lowest since May, reflecting the impact of natural disasters and disruptions stemming from the situation in the Middle East.
Despite the monthly decline, the economy continued to recover moderately, supported by improving employment and income conditions and recent government policy measures that boosted private consumption.
Business investment also picked up, although firms remained cautious about the outlook.
Meanwhile, the Bank of Japan kept its short-term policy rate at 1.0% in July, the highest since September 1995, while signaling scope for further rate hikes as underlying inflation approaches 2% and financial conditions remain supportive.